ADA Price Prediction: Bulls to Target $0.265 on Dip Buyer Support

Key Insights:

• ADA slid by 4.89% on Monday to end the day at sub-$0.255.
• Risk aversion, stemming from hawkish Fed and recession fears, sent the NASDAQ Index and ADA into the red.
• The technical indicators remain bearish, signaling a possible return to sub-$0.250.

On Monday, ADA slid by 4.89%. Following a 0.37% decline on Sunday, ADA ended the day at $0.253. Notably, ADA ended the day at sub-$0.255 for the first time since January 2021.

Tracking the broader crypto market, ADA rose to an early high of $0.269. Coming up against the First Major Resistance Level (R1) at $0.270, ADA slid to a late low of $0.249. ADA fell through the Major Support Levels to a new 2022 low before a move through the Third Major Support Level (S3) at $0.251 to end the day at $0.253.

ADA Slides to a New 2022 Low on Recession Worries

It was a quiet start to the week, with no crypto events or Input Output HK (IOHK) updates to influence.

The lack of updates left ADA in the hands of the broader crypto market and the NASDAQ Index. Fed fear and increasing worries about a hard landing and a lengthy US recession weighed on riskier assets.

The NASDAQ Index fell by 1.49%, leading the crypto market cap down 2.09% to $752.56 billion.

However, investor sentiment improved this morning, with dip buyers jumping back in. The bullish start to the day came despite the NASDAQ mini sliding by 136 points, which leaves the crypto market at risk of a reversal.

This morning, the big news was the Bank of Japan’s announcement to change its target range for 10-year yields to 50 basis points, sinking the Asian equity markets and the NASDAQ mini. Previously, the 10-year yield range stood at a 25-basis point band from its 0% target.

ADA Price Action

This morning, ADA was up 1.19% to $0.256. A mixed start to the day saw ADA fall to an early low of $0.251 before rising to a high of $0.258.

Technical Indicators

ADA needs to move through the $0.257 pivot to target the First Major Resistance Level (R1) at $0.265 and the Monday high of $0.269. A return to $0.260 would signal a bullish session. However, ADA would need the broader market to support a breakout afternoon session.

In the event of an extended rally, the bulls will likely take a run at the Second Major Resistance Level (R2) at $0.277 and $0.280. The Third Major Resistance Level (R3) sits at $0.297.

Failure to move through the pivot would leave the First Major Support Level (S1) at $0.245 in play. Barring another risk-off-fueled sell-off, ADA should avoid sub-$0.240 and the Second Major Support Level (S2) at $0.237. The Third Major Support Level (S3) sits at $0.217.

This morning, the EMAs and the 4-hourly candlestick chart (below) sent a bearish signal.

ADA sat below the 50-day EMA, currently at $0.281. The 50-day EMA slid back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA, delivering bearish signals.

A move through R1 ($0.265) would support a run at R2 ($0.277) and the 50-day EMA ($0.281). However, failure to move through the 50-day EMA (0.281) would leave ADA under pressure.